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Copyright © 2010 John Wiley & Sons, Inc.
What is organizational behavior and why is it
  important?

What are organizations like as work settings?

What is the nature of managerial work?

How do we learn about organizational
  behavior?

         Copyright © 2010 John Wiley & Sons, Inc.   1-2
Organizational behavior
  › Study of human behavior in organizations.

  › An interdisciplinary field devoted to
   understanding individual and group
   behavior, interpersonal processes, and
   organizational dynamics.


         Copyright © 2010 John Wiley & Sons, Inc.   1-3
Scientific methods models
  › Simplified views of reality that attempt to
   identify major factors and forces underlying
   real-world phenomenon.

  › Link presumed causes of events
   (independent variables) with outcomes
   (dependent variables).
         Copyright © 2010 John Wiley & Sons, Inc.   1-4
Copyright © 2010 John Wiley & Sons, Inc.   1-5
A.   Field Studies

B.   Meta Analyses

C.   Case Studies




           Copyright © 2010 John Wiley & Sons, Inc.   1-6
Meta analyses use statistical pooling from
  many studies. This aggregating
  technique allows OB researchers to
  generalize and apply the conclusions to
  many OB situations.


         Copyright © 2010 John Wiley & Sons, Inc.   1-7
Scientific thinking is important to OB:
  › The process of data collection is controlled
    and systematic.

  › Proposed explanations are carefully tested.

  › Only explanations that can be scientifically
    verified are accepted.

         Copyright © 2010 John Wiley & Sons, Inc.   1-8
Contingency thinking
  › Managers must understand the demands of
    different situations and develop responses that
    best fit the circumstances and people involved.

  › OB scientific models gather evidence of how
    different situations can best be understood and
    handled.

          Copyright © 2010 John Wiley & Sons, Inc.   1-9
Modern workplace trends
  › Commitment to ethical behavior.
  › Importance of human capital.
  › Formal authority (command and control) replaced by
    group decisions and consensus.
  › Emphasis on teamwork.
  › Pervasive influence of information technology.
  › Respect for new workforce expectations.
  › Changing concept of careers.

           Copyright © 2010 John Wiley & Sons, Inc.   1-10
Organization
  › A collection of people working together in a
   division of labor to achieve a common
   purpose.




         Copyright © 2010 John Wiley & Sons, Inc.   1-11
The core purpose of an organization is the
  creation of goods and services.

Mission statements focus attention on the
  core purpose.




         Copyright © 2010 John Wiley & Sons, Inc.   1-12
“Our Reason for Being:
To serve our customers' health needs with imaginative
  science from plants and minerals;
  To inspire all those we serve with a mission of
  responsibility and goodness;
  To empower others by sharing our knowledge, time,
  talents, and profits; and
  To help create a better world by exchanging our
  faith, experience, and hope.”

           Copyright © 2010 John Wiley & Sons, Inc.   1-13
Strategy
  › Comprehensive plan that guides
   organizations to operate in ways that allow
   them to outperform their competitors.

  › See Tom’s of Maine strategy that supports
   their mission.


           Copyright © 2010 John Wiley & Sons, Inc.   1-14
Copyright © 2010 John Wiley & Sons, Inc.   1-15
Stakeholders
  › People, groups, and institutions having an
   interest in an organization’s performance.

  › Interests of multiple stakeholders sometimes
   conflict.



         Copyright © 2010 John Wiley & Sons, Inc.   1-16
Organizational culture
  › The shared beliefs and values that influence
    the behavior of organizational members.

  › Reflects the internal personality of the
    organization.

  › ‘How we do things around here’


         Copyright © 2010 John Wiley & Sons, Inc.   1-17
Copyright © 2010 John Wiley & Sons, Inc.   1-18
Constructive culture
   › Members are encouraged to work together in ways that
     meet higher order human needs.

Passive/defensive culture
   › Members tend to act defensively in their working
     relationships.

Aggressive/defensive culture
   › Members tend to act forcefully in their working
     relationships to protect their status and positions.
             Copyright © 2010 John Wiley & Sons, Inc.       1-19
Describe an organization you have worked
 for, or been a member of.

How was the culture constructive?
 Defensive? Aggressive? Explain.




        Copyright © 2010 John Wiley & Sons, Inc.   1-20
Workforce diversity
  › Individual differences of organizational
    members, based on gender, race and
    ethnicity, age, able-bodiedness, and sexual
    orientation.




         Copyright © 2010 John Wiley & Sons, Inc.   1-21
Multiculturalism
  › Refers to inclusiveness, pluralism and genuine
    respect for diversity and individual
    differences.




         Copyright © 2010 John Wiley & Sons, Inc.   1-22
Your professor states: “One of your assignments
     this term is a team project. Please select and
     sign up for a team project.” Do you . . .
b)   Signal your friends in the classroom, and
     agree to sign up together for the same team.
c)   Wait for everyone to sign up, and then
     decide.
d)   Just pick a team randomly.

            Copyright © 2010 John Wiley & Sons, Inc.   1-23
Manager
  › Someone whose job it is to directly support
   the work efforts of others.

Effective manager
  › One whose team consistently achieves its
   goals while members remain capable,
   committed, and enthusiastic.
         Copyright © 2010 John Wiley & Sons, Inc.   1-24
Task performance
  › Quality and quantity of the work produced
    by the work unit as a whole.

Job satisfaction
  › How people feel about their work and the
    work setting.

         Copyright © 2010 John Wiley & Sons, Inc.   1-25
The management process.
  › Planning

  › Organizing

  › Leading

  › Controlling



         Copyright © 2010 John Wiley & Sons, Inc.   1-26
Copyright © 2010 John Wiley & Sons, Inc.   1-27
The nature of managerial work.
  › Managers work long hours.

  › Managers are busy people.

  › Managers are often interrupted.

  › Managerial work is fragmented and variable.

  › Managers work mostly with other people.

  › Managers spend a lot of time communicating.
         Copyright © 2010 John Wiley & Sons, Inc.   1-28
Copyright © 2010 John Wiley & Sons, Inc.   1-29
Managerial skills and competencies

Skill
   › An ability to translate knowledge into action
        that results in a desired performance.




             Copyright © 2010 John Wiley & Sons, Inc.   1-30
Technical skill
  › Ability to perform specialized tasks.

Human skill
  › Ability to work well with other people.

Conceptual skill
  › Capacity to analyze and solve complex and
    interrelated problems.
          Copyright © 2010 John Wiley & Sons, Inc.   1-31
Emotional intelligence
  › Ability to understand and deal with emotions.
     Self-awareness

     Self-regulation

     Motivation

     Empathy

     Social skill
           Copyright © 2010 John Wiley & Sons, Inc.   1-32
Moral Management – includes ethics in
 decision-making.
  › Immoral manager

  › Amoral manager

  › Moral manager
     Practices ethics mindfulness.

         Copyright © 2010 John Wiley & Sons, Inc.   1-33
Copyright © 2010 John Wiley & Sons, Inc.   1-34
Learning
 › An enduring change in behavior that results
   from experience.




        Copyright © 2010 John Wiley & Sons, Inc.   1-35
Life-long learning
  › Continuous learning from everyday work
    experiences, colleagues, mentors, and training
    seminars and workshops.

Organizational learning
  › Process of acquiring knowledge and utilizing
    information to adapt successfully to changing
    circumstances.

          Copyright © 2010 John Wiley & Sons, Inc.   1-36
Copyright © 2010 John Wiley & Sons, Inc.   1-37

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Introducing organizational behavior

  • 1. People Make the Difference Copyright © 2010 John Wiley & Sons, Inc.
  • 2. What is organizational behavior and why is it important? What are organizations like as work settings? What is the nature of managerial work? How do we learn about organizational behavior? Copyright © 2010 John Wiley & Sons, Inc. 1-2
  • 3. Organizational behavior › Study of human behavior in organizations. › An interdisciplinary field devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics. Copyright © 2010 John Wiley & Sons, Inc. 1-3
  • 4. Scientific methods models › Simplified views of reality that attempt to identify major factors and forces underlying real-world phenomenon. › Link presumed causes of events (independent variables) with outcomes (dependent variables). Copyright © 2010 John Wiley & Sons, Inc. 1-4
  • 5. Copyright © 2010 John Wiley & Sons, Inc. 1-5
  • 6. A. Field Studies B. Meta Analyses C. Case Studies Copyright © 2010 John Wiley & Sons, Inc. 1-6
  • 7. Meta analyses use statistical pooling from many studies. This aggregating technique allows OB researchers to generalize and apply the conclusions to many OB situations. Copyright © 2010 John Wiley & Sons, Inc. 1-7
  • 8. Scientific thinking is important to OB: › The process of data collection is controlled and systematic. › Proposed explanations are carefully tested. › Only explanations that can be scientifically verified are accepted. Copyright © 2010 John Wiley & Sons, Inc. 1-8
  • 9. Contingency thinking › Managers must understand the demands of different situations and develop responses that best fit the circumstances and people involved. › OB scientific models gather evidence of how different situations can best be understood and handled. Copyright © 2010 John Wiley & Sons, Inc. 1-9
  • 10. Modern workplace trends › Commitment to ethical behavior. › Importance of human capital. › Formal authority (command and control) replaced by group decisions and consensus. › Emphasis on teamwork. › Pervasive influence of information technology. › Respect for new workforce expectations. › Changing concept of careers. Copyright © 2010 John Wiley & Sons, Inc. 1-10
  • 11. Organization › A collection of people working together in a division of labor to achieve a common purpose. Copyright © 2010 John Wiley & Sons, Inc. 1-11
  • 12. The core purpose of an organization is the creation of goods and services. Mission statements focus attention on the core purpose. Copyright © 2010 John Wiley & Sons, Inc. 1-12
  • 13. “Our Reason for Being: To serve our customers' health needs with imaginative science from plants and minerals; To inspire all those we serve with a mission of responsibility and goodness; To empower others by sharing our knowledge, time, talents, and profits; and To help create a better world by exchanging our faith, experience, and hope.” Copyright © 2010 John Wiley & Sons, Inc. 1-13
  • 14. Strategy › Comprehensive plan that guides organizations to operate in ways that allow them to outperform their competitors. › See Tom’s of Maine strategy that supports their mission. Copyright © 2010 John Wiley & Sons, Inc. 1-14
  • 15. Copyright © 2010 John Wiley & Sons, Inc. 1-15
  • 16. Stakeholders › People, groups, and institutions having an interest in an organization’s performance. › Interests of multiple stakeholders sometimes conflict. Copyright © 2010 John Wiley & Sons, Inc. 1-16
  • 17. Organizational culture › The shared beliefs and values that influence the behavior of organizational members. › Reflects the internal personality of the organization. › ‘How we do things around here’ Copyright © 2010 John Wiley & Sons, Inc. 1-17
  • 18. Copyright © 2010 John Wiley & Sons, Inc. 1-18
  • 19. Constructive culture › Members are encouraged to work together in ways that meet higher order human needs. Passive/defensive culture › Members tend to act defensively in their working relationships. Aggressive/defensive culture › Members tend to act forcefully in their working relationships to protect their status and positions. Copyright © 2010 John Wiley & Sons, Inc. 1-19
  • 20. Describe an organization you have worked for, or been a member of. How was the culture constructive? Defensive? Aggressive? Explain. Copyright © 2010 John Wiley & Sons, Inc. 1-20
  • 21. Workforce diversity › Individual differences of organizational members, based on gender, race and ethnicity, age, able-bodiedness, and sexual orientation. Copyright © 2010 John Wiley & Sons, Inc. 1-21
  • 22. Multiculturalism › Refers to inclusiveness, pluralism and genuine respect for diversity and individual differences. Copyright © 2010 John Wiley & Sons, Inc. 1-22
  • 23. Your professor states: “One of your assignments this term is a team project. Please select and sign up for a team project.” Do you . . . b) Signal your friends in the classroom, and agree to sign up together for the same team. c) Wait for everyone to sign up, and then decide. d) Just pick a team randomly. Copyright © 2010 John Wiley & Sons, Inc. 1-23
  • 24. Manager › Someone whose job it is to directly support the work efforts of others. Effective manager › One whose team consistently achieves its goals while members remain capable, committed, and enthusiastic. Copyright © 2010 John Wiley & Sons, Inc. 1-24
  • 25. Task performance › Quality and quantity of the work produced by the work unit as a whole. Job satisfaction › How people feel about their work and the work setting. Copyright © 2010 John Wiley & Sons, Inc. 1-25
  • 26. The management process. › Planning › Organizing › Leading › Controlling Copyright © 2010 John Wiley & Sons, Inc. 1-26
  • 27. Copyright © 2010 John Wiley & Sons, Inc. 1-27
  • 28. The nature of managerial work. › Managers work long hours. › Managers are busy people. › Managers are often interrupted. › Managerial work is fragmented and variable. › Managers work mostly with other people. › Managers spend a lot of time communicating. Copyright © 2010 John Wiley & Sons, Inc. 1-28
  • 29. Copyright © 2010 John Wiley & Sons, Inc. 1-29
  • 30. Managerial skills and competencies Skill › An ability to translate knowledge into action that results in a desired performance. Copyright © 2010 John Wiley & Sons, Inc. 1-30
  • 31. Technical skill › Ability to perform specialized tasks. Human skill › Ability to work well with other people. Conceptual skill › Capacity to analyze and solve complex and interrelated problems. Copyright © 2010 John Wiley & Sons, Inc. 1-31
  • 32. Emotional intelligence › Ability to understand and deal with emotions.  Self-awareness  Self-regulation  Motivation  Empathy  Social skill Copyright © 2010 John Wiley & Sons, Inc. 1-32
  • 33. Moral Management – includes ethics in decision-making. › Immoral manager › Amoral manager › Moral manager  Practices ethics mindfulness. Copyright © 2010 John Wiley & Sons, Inc. 1-33
  • 34. Copyright © 2010 John Wiley & Sons, Inc. 1-34
  • 35. Learning › An enduring change in behavior that results from experience. Copyright © 2010 John Wiley & Sons, Inc. 1-35
  • 36. Life-long learning › Continuous learning from everyday work experiences, colleagues, mentors, and training seminars and workshops. Organizational learning › Process of acquiring knowledge and utilizing information to adapt successfully to changing circumstances. Copyright © 2010 John Wiley & Sons, Inc. 1-36
  • 37. Copyright © 2010 John Wiley & Sons, Inc. 1-37

Editor's Notes

  1. OB is an academic discipline devoted to understanding individual and group behavior, interpersonal processes, and organizational dynamics with the goal of improving the performance of organizations and the people in them. It is also a science, because it uses scientific research methods. It draws its knowledge base from a variety of the behavioral and social sciences. These include psychology, sociology, anthropology, political science and economics. OB integrates and applies this knowledge to real world problems. In learning about OB, we gain a better work-related understanding of our own behavior and that of others. This helps us to interact more effectively. It help us to motivate, to influence, and to succeed.
  2. The field of OB uses scientific methods to develop and empirically test generalizations about behavior in organizations. ( Empirical – relying on or derived from observation or experiment. The American Heritage Dictionary of the English Language, Fourth Edition . Copyright © 2000 by Houghton Mifflin Company. Published by the Houghton Mifflin Company). OB scholars often test through scientific methods models. They use these models to study theories of human behavior in organizations.
  3. The science of OB focuses on applications that can make a real difference in how organizations and people in them perform.
  4. Accepted conclusion of scientific research: there is no single best way to manage people and situations. Although it is relatively easy to conclude that what works well in one culture may not work as well in another, it is much harder to specify exactly how cultural differences affect things like motivation, job satisfaction, leadership style, negotiating tendencies, and ethical behavior. We need to better understand the influence of cultural differences on how OB theories and concepts apply in different countries.
  5. Contingency thinking is especially relevant in the complex workplaces of today. The last few years have been dramatic in both the nature and pace of change.
  6. This definition describes everything from clubs, voluntary organizations, and religious bodies, to entities such as small and large businesses, labor unions, schools, hospitals, and government agencies. All such organizations share certain common features that can help us better understand and deal with them.
  7. Mission statements communicate: A clear sense of the domain in which the organization’s products and services fit. A vision and sense of future aspirations.
  8. Tom's of Maine, Inc. manufactures oral and personal care products in the United States and internationally. They use only natural ingredients and cite environmental sustainability as one of their key values. (retrieved from the Internet on http://www.tomsofmaine.com/business-practices/our-reason-for-being.aspx). To see the mission statements of the Fortune 500 companies go to: http://www.missionstatements.com/fortune_500_mission_statements.html
  9. Key managerial responsibilities include strategy formulation and implementation. Strategy seeks to operationalize the organization’s mission. Knowledge of OB is essential to effective strategy implementation.
  10. Organizations are dynamic open systems that obtain resource inputs from the environment and transform them into finished goods or services that are returned to the environment as outputs. Customers value the outputs and create a continuing demand. This cycle is called a value chain.
  11. Customers, owners, employees, suppliers, regulators, and local communities are key stakeholders. Executive leadership often focuses on balancing multiple stakeholder expectations.
  12. Positive organizational cultures: Have a high-performance orientation. Emphasize teamwork. Encourage risk taking. Emphasize innovation. Respect people and workforce diversity. "Our work begins and ends with relationships. We start by respecting and empowering each other as coworkers, and build on that to develop true ties with our retail partners and vendors. The ultimate goal is to create honest and open relationships with everyone who uses our products, and believes, like us, that a company can and should be both successful and socially responsible." Tom O'Brien, CEO , Tom’s of Maine .
  13. Using an instrument called the Organizational Culture Inventory (OCI), people describe the behaviors and expectations that make up the prevailing cultures of their organizations. The OCI maps use these results to describe three alternative types of organizational cultures.
  14. Positive organizational cultures tap the talents, ideas, and creative potential of all members. This makes the organization a better employer and helps it to compete more effectively. Workforces mirror the larger culture. Positive organizational cultures that value diversity promote creativity by encouraging all members to share their ideas and perspective. The organization also benefits with increased market share and productivity.
  15. A key element in any organization that embraces multiculturalism is inclusivity – the degree to which the culture values diversity and is open to anyone who can perform a job, regardless of their diversity attributes. We all want to work for an organization where we are respected and trusted not only by our managers, but by our co-workers; where our talent is recognized and developed, where our work is valued.
  16. Some of our unconscious biases against ‘others’ can often limit our experience. As we expand the boundaries of our comfort zone, we open ourselves to new experiences. We grow personally, professionally, and organizationally.
  17. Managers assume roles such as coordinator, coach, or team leader. Contemporary emphasis trends toward managerial behaviors of helping and supporting.
  18. Managers should be held accountable for both results. Job satisfaction, a key OB outcome, is closely associated with future performance.
  19. Planning – defining goals, setting specific performance objectives, and identifying the actions needed to achieve them. Organizing – creating work structures, divides tasks, and arranges resources. Leading – motivating others toward high performance through effective communication good interpersonal relations. Controlling – monitoring performance and taking necessary corrective action.
  20. Anyone serving as a manager or team leader faces a very demanding and complicated job. The busy day of a manager includes a shifting mix of incidents that demand immediate attention, with the number of incidents being greatest for lower-level managers.
  21. Based on Henry Mintzberg’s classic study on the ten key roles of a manager.
  22. Robert Katz divides the essential managerial skills into three categories: technical, human, and conceptual. The relative importance of these skills varies across the different levels of management.
  23. Technical skills are considered more important at entry levels of management, where supervisors and team leaders must deal with job-specific problems. Human skills are central to managerial success – at all organizational levels. Effective managers in today’s global economy must integrate technical, human and conceptual skills. They must be sensitive to workforce dynamics while consistently adapting to their environment. They must understand broad applications of technology and focus on quality and customer service.
  24. Emotional intelligence, with its emphasis on managing emotions both personally and in relationships with others, is now considered an important leadership competency. A leader’s emotional intelligence contributes significantly to his or her leadership effectiveness.
  25. An immoral manager does not subscribe to any ethical principles. An opportunity may be exploited for purely personal or business gain (exp. Bernard Madoff). The amoral manager does not consider the ethics of a decision or behavior, or its potential negative effect on others. The moral manager incorporates ethics principles and goals into his or her behavior.
  26. Our new and rapidly developing knowledge-based economy places a great premium on learning by organizations as well as individuals.
  27. Only the learners will be able to maintain the pace and succeed in a high-tech, global, changing environment. Just like individuals, organizations must be able to change continuously and positively while searching for new ideas and opportunities.
  28. Experiential Learning in OB course parallels real world organizational learning. Experience > Reflection > Theory > Practice.